It should be pointed out that, except for incidental shore expenditures, cruises on United States vessels involve chiefly fare payments by United States citizens to United States vessels, which do not, of course, enter the balance of payments. The amount of such payments was estimated at approximately $6,000,000 in 1936 and in 1937. Earnings of foreign vessels from cruise travel were placed at $19,000,000 and $24,000,000 in the 2 years, respectively. Collateral information obtained from questionnaire returns bearing upon the average time spent away from the United States by citizens visiting Europe is given in table VII. These data, which were based upon an examination of more than 1,000 returns covering approximately 1,500 persons, confirm certain conclusions drawn from similar averages for 1935 (see The Balance of International Payments of the United States in 1935, Trade Information Bulletin No. 833, appendix E). First- and cabin-class passengers to Europe spend a shorter average length of time away from the United States than those who travel in the less expensive steamship accommodations as a result, of course, of a shorter average sojourn in Europe rather than (except as compared with mono-class passengers) of a shorter average number of days spent in crossing. Travelers in those two classes reported average stays in Europe of 38 days, as compared with 55 and 54 for tourist- and mono-class passengers, respectively, and 68 days for third-class passengers. These differences may be accounted for upon the basis of known characteristics of travel in the several types of accommodations, as well as upon the basis of other evidence provided by questionnaire returns. Travel by persons going to Europe on business is primarily in first and cabin class, and business trips might be expected to be of shorter duration, in general, than pleasure journeys. It may be conjectured also that those whose outlays for travel are restricted to moderate sums, as indicated by their choice of less expensive steamship accommodations, would justify the considerable expense of ocean transportation only upon the basis of an extended sojourn in Europe. In the case of thirdclass travel, comprised in large part of naturalized citizens who are going abroad to visit relatives in their native countries and who tend to make extended stays, the number of days spent in Europe tends to be relatively high in the average case. Finally, the high number of days spent in crossing by mono-class passengers is explained by the fact that persons traveling on freighters and other vessels for which speed in crossing is no object fall into mono class. It may be noted also that these data, in conjunction with estimated average expenditures, by classes, of citizens visiting Europe, shown in table IV, would indicate expenditures per person-day ranging from $21 for first-class passengers to less than $6 for thirdclass passengers. Table VII.-Average Time Spent Away From the United States by Citizens Visiting European and Mediterranean Area, 1937 1 Similar data covering travel to the European and Mediterranean area by alien residents of the United States, shown in table VIII, serve especially to emphasize their relatively long visits abroad as compared with those made by citizens. The number of United States citizens residing in foreign countries on January 1, 1938, was placed by the Department of State, upon the basis of consular reports, at 347,400. The estimate was stated to include only citizens whose residence abroad had a permanent or semipermanent character and to exclude, therefore, tourists and all others whose sojourn in foreign countries was considered to be only transitory. Of the total, 167,600, or almost half, were in Canada and Newfound land. The number of citizens residing in Europe was 88,400, of which 25,600 were in Italy and 12,400 each in the United Kingdom and in France. Americans living in other areas were reported as follows: Asia, 34,600 (of whom 10,000 were in China); Central America, 22,900 (including 14,800 in Mexico); South America, 13,800; West Indies and Bermuda, 13,500; Africa, 4,100; and Oceania, 2,500. Table VIII-Average Time Spent Away From the United States by Alien Residents Visiting European and Mediterranean Area, 1937 i The classification of nonimmigrant aliens admitted to the United States, which provides basic data on travel by alien residents of this country to foreign countries and by alien visitors from abroad, is shown in table IX for 1937, with comparative figures for 1936. From the aggregates for each class of nonimmigrant alien, as given, were deducted the respective numbers which returned from temporary visits in foreign countries or entered for temporary visits in the United States from contiguous countries. This traffic is taken account of in the preparation of estimates which enter the United States-Canadian and United States-Mexican tourist accounts. Table IX.-Nonimmigrant Aliens Admitted to the United States, 1936–37 In continuous transit through the United States... Government officials, their families, attendants, servants, and employees. Students.. Miscellaneous classes Total..... 1 Admissions from Canada and Mexico via seaports are partly estimated. The number of alien residents departing for temporary visits in oversea countries was 55,220 and 53,390 In 1936 and 1937, respectively. The figures are adjusted to allow for small discrepancies between the number of aliens admitted for temporary visits in the United States whose permanent residence is in some foreign country (who, together with aliens returning to a permanent residence in the United States after temporary visits abroad, constitute nonimmigrant aliens under the general classification, upon the basis of residence, employed by the Immi gration and Naturalization Service) and the number of aliens admitted as visitors and classified according to status or calling under the Immigration Act of 1924. In 1935, 1936, and 1937, the average expenditures of alien residents of the United States have been estimated upon the basis of questionnaires distributed each year to several thousand aliens whose names are selected at random from the lists of persons obtaining reentry permits from the Department of Labor. Since reported average expenditures by alien residents traveling in each steamship class are lower than those for United States citizens traveling in similar accommodations (largely the result, however, of smaller outlays in foreign countries rather than of smaller fare payments to, and expenditures on board, vessels) and since a much higher proportion of alien residents travel in the relatively inexpensive accommodations, per capita outlays by alien residents visiting oversea areas are considerably less than those of citizens visiting corresponding areas. In respect of average expenditures in the United States by alien visitors from overseas, no specific data are available. It has been assumed that-account being taken of class of steamship accommodation and length of journey--their outlays fall within the range of those ascertained for citizens from questionnaire returns. Furthermore, since aliens admitted in continuous transit may remain 60 days in the United States and possibly incur expenses equal to those of foreign visitors for business or pleasure and since the deduction covering visitors entering from Canada and Mexico eliminates chiefly in-transit travelers who make relatively short trips across United States territory, estimated average expenditures by in-transit visitors from oversea countries were made identical with those of visitors for business and pleasure. Only a small proportion of alien residents or of alien visitors travel on United States vessels. The deduction from the estimated gross expenditures of alien residents for oversea travel was, accordingly, only $2,000,000 in 1936 and 1937, and payments to United States vessels by alien visitors, which, as international payments, are included in the oversea tourist account, were $9,000,000 and $8,000,000 in the 2 years, respectively. Corresponding payments to foreign vessels by alien residents visiting oversea countries were approximately $11,000,000 in each of the years 1936-37, and those by alien visitors to the United States (which, however, as payments by foreigners to foreigners, are excluded from the international travel account) were placed at $22,000,000 in 1936 and at $25,000,000 in 1937. Upon the basis of these data, together with those cited in connection with citizen travel to noncontiguous countries, it may be estimated that the gross earnings of United States lines from oversea travel (excluding intercoastal, Great Lakes, contiguous, and air traffic) were $37,000,000 in 1937, as compared with $40,000,000 in 1936, of which $8,000,000 and $9,000,000 in the respective years represented fare payments (and incidental expenditures on board ship) by foreigners. The gross earnings of foreign lines from travel between the United States and oversea countries were estimated at $107,000,000 in 1936 and at $130,000,000 in 1937, of which $85,000,000 and $105,000,000 comprised fare payments by United States travelers. Net payments to foreigners arising out of oversea passenger traffic were therefore $76,000,000 in 1936 and $97,000,000 in 1937. If account is taken also of the respective earnings of United States and foreign vessels from the carriage of ocean freight, which were estimated by the Maritime Commission at $82,000,000 in 1936 and at $145,000,000 in 1937 for the former and at $207,000,000 in 1936 and at $385,000,000 in 1937 for the latter, the gross earnings of the United States merchant marine from the carriage of passengers and cargo between this country and oversea countries were $122,000,000 in 1936 and $182,000,000 in 1937, as compared with $314,000,000 and $515,000,000, respectively, earned by foreign vessels. Since net payments to foreigners for the carriage of ocean freight were $63,000,000 in 1936 and $118,000,000 in 1937, total net payments to foreigners on oversea shipping account were $139,000,000 and $215,000,000 in the 2 years, respectively. C. RECONCILIATION OF 1936 AND 1937 ESTIMATES OF TOTAL UNITED STATES LONG-TERM INVESTMENTS IN FOREIGN COUNTRIES The reduction of $1,412,000,000 in total long-term investments in foreign countries from $12,486,000,000 on December 31, 1936, to $11,074,000,000 on December 31, 1937, is accounted for as shown below: DIRECT INVESTMENTS Total direct investments, December 31, 1936 (as estimated in Total direct investments, December 31, 1936 (as estimated in Millions of dollars 7,745 1, 054 6, 691 Revisions. New investments, 1937. Earnings reinvested, 1937. Total__ Reductions: Sales of, and reductions in bonded debt of, 1937. Net additions_. Total direct investments, December 31, 1937--- PORTFOLIO INVESTMENTS 64 17 150 231 52 179 6, 870 Total portfolio investments, December 31, 1936_ Reductions: Sinking fund and redemption operations.. 4, 741 206 Bonds repatriated prior to redemption, cancelation, or 313 Investments reclassified as direct investments_ 161 Common and preferred shares transferred to miscella- Grand total, long-term investments abroad, December 31, 1937- 937 3, 804 400 4, 204 11, 074 As of December 31, 1936, repatriations of foreign dollar bonds were estimated at $1,300,000,000, from which was deducted $300,000,000 for net American purchases of miscellaneous foreign securities, now classified separately as miscellaneous portfolio investments. D. UNITED STATES GOVERNMENT INTERNATIONAL ACCOUNT Table X.-International Cash Transactions of the United States Government, 1 Including estimated disbursements in the United States by foreign governments for diplomatic representation. Including approximately $6,700,000 in 1936 and $72,000 in 1937 paid to producers in the Philippine Islands as rental and benefit payments under the provisions of the Agricultural Adjustment Act as amended. 3 The respective items include (under receipts) "net revenue from canal operations transferred from the Canal Zone to Washington" and (under payments) "total tolls collected from American vessels." In other recent years the gross, rather than net, revenues were reported, with Government appropriations shown separately under payments. 4 Data refer to years ended June 30, 1936, and June 30, 1937. Partly estimated. • Estimated. 7 Payments by United States on account of awards of the War Claims Arbiter to Hungarian nationals. 8 Receipts from foreign governments on account of charges incurred by the Bureau of Engraving and Printing and on account of charges incurred by the United States mints for coinage furnished to foreign governments. The item represents largely expenditures abroad by the United States Public Health and Customs Services and receipts from foreign governments by the United States Coast Guard. 10 Estimated payments to veterans living in foreign countries in settlement of adjusted-service certificates. 11 Annual installments on lump-sum settlement of general claims under convention of Apr. 24, 1934. Amounts include interest on deferred payments. 12 Receipts in settlement of awards made in favor of American nationals by the General Claims Com. mission, United States and Panama, under the conventions of 1926 and 1932. 13 The item covers United States internal revenue on cigars and spirituous liquors accruing to the Insular Treasury and in 1937, in addition, funds transferred to the Philippines representing the net proceeds of processing taxes collected up to June 1, 1937, on Philippine coconut oil. |